Section 811 Project Rental Assistance (PRA) Program Michigan State Housing Development Authority and Department of Health and Human Services

Today’s Goal Today’s Purpose – Help develop an infrastructure necessary to implement PRA by: Describing the 811 Program and Getting your feedback prior to preparing the 811 Application Getting your feedback on how to make 811 successful long-term

Today’s Presentation Describes 811 Timeline 811 Program Goals Eligible Properties Eligible Populations Services and Supports Potential Demand for Services Referral Process Q & A

811 Application Timeline Focus Groups – GR, SE Michigan, Lansing 811 RFP - September or October, 2015 Webinars– Fall, 2015 Award Announcements – December, 2015

811 Application Timeline Lease up begins – winter/spring 2016 Rolling Round – If not enough applications, MSHDA may do a “Rolling Round” – which is an open application process – first come, first served - allowing the state to achieve lease-up and provide housing and services in a timely manner.

Section 811 Goals Integrated Low Income Housing Tax Credit (LIHTC) rental units for people with disabilities that qualify for Medicaid Creates new Project Rental Assistance (PRA) Supports people in their transition out of nursing facilities, foster care, or homelessness Supports the integration of individuals with disabilities into the community Integrated LIHTC rental units for people with disabilities at or below 30% Area Median Income in multi-family housing developed with affordable housing funds Integration into the community is done through subsidized rental assistance and long-term support and services who might otherwise be institutionalized or become homeless

MSHDA & DHHS Goals MSHDA Support 174 PRA units Support 100 Housing Choice Voucher Units DHHS Use Medicaid and other support services Establish an MOU between service providers, property owners and managers Use support services as the individual is determined to be eligible for the 811 PRA program MOU will describe how eligible participants will be referred to the property and services will be provided

Section 811 Owner Eligibility Eligible Applicants - Low Income Housing Tax Credit Developer 4% combined with MSHDA direct lending programs, or 9% LIHTC No Senior LIHTC Developments Owners/property managers experienced with Project Based Section 8 & TRACS

Eligible Units Rents are set at 50% AMI by county Primarily One bedroom units A high need for accessible units No more than 25% of total units can: Be provided Section 811 PRA funds Be used for supportive housing for persons with disabilities Have any occupancy preference for persons with disabilities

Desired Development Amenities Public Transportation and Community Resources Reasonable size and configuration Integration throughout the development

Environmental Requirements A Phase I Environmental Study will be required if: You do not have a Phase I from time you took ownership of the property OR if the Phase I you do have was not done in the timing requirements for the acquisition or real estate transaction, such as construction, rehab, or refinancing (prepared within a year, updated within 6 months); If you do have a Phase I, it is was done prior to 1995. Note: If you have a Phase I and it meets these requirements, but it does not include a “vapor screen” done in accordance with to ASTM 2600-10, then 811 requires this additional screen be performed. Vapor screens became more common in Phase I’s around 2008-2010. Check your report or ask your consultant to be sure.   Environmental Study Questions: Daniel Lince, MSHDA, at: linced@michigan.gov Michael Vollick, MSHDA, at: VollickM2@michigan.gov

Program Requirements Rental Assistance Contract (RAC)—20 year can be amended to increase or decrease unit count Use Agreement – for 30 years – shows the number of Assisted Units available for Occupancy.

Program Requirements Use of: Tenant Rental Assistance Certification System (TRACS) – a computer system created by HUD that enables Grantee to electronically submit their monthly tenant certifications and voucher information Davis-Bacon: Developments that are in construction/rehab with 12 or more PRA units

811 Development Benefits LIHTC Developer: 811 provides rental assistance paying the landlord directly. Community partners provide services to keep the household stable. Management company is provided with service agency contact information.

811 Development Benefits LIHTC Developer: Vacancy Loss claims allowed – up to 80% of the contract rent for up to 60 days of vacancy provided the owner (1) commences and performs actions to fill the vacancy, and (2) has not rejected any eligible applicants, except for good cause.

Eligible Tenants Disability & Age Income Households with at least one individual with a disability Non-elderly: between 18 and 61 years of age at time of lease-up Household member must be eligible for community-based, long-term services such as those provided through Medicaid waivers Services must be available and are voluntary Income Extremely low-income households with income at or below 30% AMI Tenant must pay 30% of income toward rent and utilities

Timeline for Opening New Subsidized Rental Assistance Units 2016: 40 PRA Units 2017: 75 PRA Units 2018: 59 PRA Units 2016: 100 Housing Choice Vouchers

Security Deposits MSHDA/DHHS has requested that DHHS provide security deposit funding (SER funds or MFP) to support tenants in the 811 program, thereby allowing: Successful transition into the community; Realize savings by reducing nursing facility costs

Eligible Tenants Individuals who: Are in a nursing facility who might transition out into the community using services that are provided under the MI Choice Waiver, or Have a developmental disability and are being served by a Community Mental Health Service Provider, or Are in a nursing facility and might transition out into the community through nursing facility transition services that are provided by a Center for Independent Living, or May be forced to enter a nursing facility because an affordable home is not available for them in the community, or Are homeless with a link to a service provider, or Live in foster care with a link to community based services.

Population for 811 Project Eligible Populations Program Name Program Entity Population for 811 Project MI Choice Waiver MI Choice Waiver Agent Individuals who are eligible for long-term supports and services Behavioral Health Services and Supports Community Mental Health Agency Center for Independent Living Services Center for Independent Living

Population for 811 Project Eligibility Requirements Eligible Populations Program Name Population for 811 Project Eligibility Requirements MI Choice Waiver Individuals who are eligible for long term supports and services Has application pending or has active Medicaid eligibility Has income equal to or less than 300% of Supplemental Security Income Meets “Nursing Facility Level of Care” Requires supports coordination and at least one other MI Choice Waiver Service Behavioral Health Services and Supports CMHs are required to provide services to anyone with a Serious Mental Illness under the Mental Health Code Payments are based on type of health coverage Medicaid Services FOR STATE PLAN AND B3 SERVICES – Is eligible for Medicaid and requires assistance with at least 3 activities of daily living FOR C WAIVER SERVICES – Has an “Intermediate Care Facility Level of Care” Center for Independent Living Services Is eligible for Medicaid or other programs that provide long-term supports and services Requires physical assistance with at least one activity of daily living

Types of Services available to tenant Services and Supports Program Name Types of Services available to tenant MI Choice Waiver (1) Community transition services; (2) Community living supports; (3) Nursing services; (4) Respite services; (5) Adult day health; (6) Environmental modifications; (7) Non-medical transportation; (8) Medical supplies and equipment; (9) Chore services; (10) Personal emergency response systems; (11) Private duty nursing; (12) Counseling; (13) Home delivered meals; (14) Training in independent living skills; (15) Supports coordination; (16) Fiscal intermediary services; and (17) Other goods and services Behavioral Health Services and Supports Mental Health Specialty Services and Supports Program Medicaid State Plan – Inpatient services, outpatient services, and community-based supports and services Medicaid B3 Waiver – Assistance with activities of daily living including eating, toileting, bathing, grooming, dressing, transferring from one position to another, mobility within the home, taking medication, meal preparation, laundry, housework or shopping for essential items Medicaid C Waiver (Habilitation Supports Waiver) – Residential and non-residential services and supports for individuals with an “Intermediate Care Facility Level of Care” Center for Independent Living Services Assistance with applying for Medicaid services including the Adult Home Help program Assistance with activities of daily living including eating, toileting, bathing, grooming, dressing, transferring from one position to another, mobility within the home, taking medication meal preparation, laundry, housework or shopping for essential items

Michigan Partnership for Affordable Housing Michigan State Housing Development Authority and Department of Health and Human Services Money Follows the Person Project

Potential Demand for Section 811 Project Based Rental Assistance Units The accompanying spreadsheet includes some estimates on the demand for the rental units. Please note the following: Some of the individuals included in these estimates already have some type of housing arrangement. Individuals must be eligible for the housing supports AND eligible for long-term supports and services.

Top 10 Counties with High Need Wayne Genesee Oakland Muskegon Macomb Ingham Kent Ottawa Washtenaw Jackson

Referral Process MDHHS is still working with MSHDA to develop the referral process for Section 811 Project Based Rental Assistance units. One local entity will be responsible in each region/county for maintaining the waiting list for the units. Other local entities within the region will be able to submit referrals to the coordinating entity for inclusion on the waiting list. The waiting list will be organized based on a prioritization process.

Questions Sue Eby Behavioral Health and Developmental Disabilities Administration ebys@michigan.gov Gayle Haven Medical Services Administration HavenG@michigan.gov Phil Kurdunowicz Office of Health Policy and Innovation KurdunowiczP@michigan.gov

Questions Janet Irrer, MSHDA, irrerj@michigan.gov Christine Miller, MSHDA, millerc10@michigan.gov Kelly Rose, MSHDA, rosek2@michigan.gov